GENERAL CONDITIONS APPLICABLE TO ENTITIES AND SERVICES

SPECIFIED IN ANNEXES 1 TO 5

1.         Notwithstanding anything in the Annexes 1-5, the Agreement shall not apply to:

            -           All consultancy and franchise arrangements

            -           Transportation of mail by air

            -           Statutory insurances including third party liability in respect of vehicles and vessels and employer's liability insurance in respect of employees

            -           Purchase of office or residential accommodation by the Government Property Agency.

2.         Operators of telecommunications services may require licensing under the Telecommunication Ordinance.  Operators applying for the licences are required to be established in Hong Kong under the Companies Ordinance.

3.         Hong Kong, China shall not be obliged to permit the supply of such services cross-border, or through commercial presence or the presence of natural persons.

4.         The following services are excluded from the Financial Services under Annex 4

            1.         CPC 81402

                        Insurance and pension consultancy services

            2.         CPC 81339

                        Money broking

            3.         CPC 8119+81323

                       Asset management, such as cash or portfolio management, all forms of collective investment management, pension fund management, custodial depository and trust services.

            4.         CPC 81339 or 81319

                        Settlement and clearing services for financial assets, including securities, derivative products, and other negotiable instruments.

            5.         CPC 8131 or 8133

                        Advisory and other auxiliary financial services on all the activities listed in subparagraphs 5(a)(v) to (xvi) in the Annex on Financial Services in the General Agreement on Trade in Services, including credit reference and analysis, investment and portfolio research and advice, advice on acquisitions and on corporate restructuring and strategy.

            6.         CPC 81339+81333+81321

                        Trading for own account or for account of customers, whether on an exchange, in an over-the-counter market or otherwise, the following:

                        -           money market instruments (cheques, bills, certificate of deposits, etc.)

                        -           foreign exchange

                        -           derivative products including, but not limited to futures and options

                        -           exchange rate and interest rate instruments, including products such as swaps, forward rate agreement, etc.

                        -           transferable securities

                        -           other negotiable instruments and financial assets, including bullion.